The guayule plant, Parthenium aroentatum (Gray), which grows principally in the southwest United States and Mexico is known as a potential domestic source of rubber and organic chemicals. See, for example, the book "Guayule Reencuentro en el Desierto" published by Consejo Nacional de Ciencia y Tecnologia, Saltillo, Coahuila, Mexico (1978) and the magazine "Emergency Management," published by the Federal Emergency Management Agency, Washington, D.C., volume I, no. 4, 1981, pages 4-9. Rubber and other useful organic materials can be obtained from guayule by known processes involving comminuting (grinding) the material and then subjecting it to extraction and/or water flotation. While much attention has been directed to the recovery and processing of elastomeric materials (rubber) from guayule, less attention has been directed to utilization of the other organic materials which can be obtained from these sources such as resin and bagasse. Since large amounts of rubber will probably be recovered from guayule in the future, it is clear that large amounts of other guayule organic products, such as oils, resin and bagasse will also become available. Guayule bagasse is the solid lignocellulosic residue or material left after processing of guayule plant material. Therefore methods for directly using and/or processing these other guayule products to convert them in economically efficient ways to useful products are of increasing interest. The present invention meets these goals.